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| Russia And China Implement Countermeasures For Depressed Nickel Market |
| = Russia Revokes Export Duty On Nickel, China Revises Regulations For Conversion Trade On Consignment |
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Owing to the internationally shrunk demand for nickel, a scale of nickel trade has inclined to be depressed and, in order to cope with this aspect, Russian Government has decided the policy to revoke the duty of 5% imposed on nickel export. Also, Chinese Government has implemented from January of 2009 to relieve the regulations for conversion trade on consignment to export nickel metal and cobalt from China. In order to comply with the request from such nickel producers as Norilsk Nickel, Russian Government has decided to revoke the duty on nickel export and this revocation will be put in practice after its legal procedure was finished. In addition to Norilsk Nickel, such other Russian nickel producer as Ufaleynickel has suspended to produce nickel from October of 2008. Also, Norilsk Nickel, which is the largest producer of nickel in the world, said that the depressed nickel market caused to decrease the turnover for 2008 to US$8,000 million, having fallen to half of that for 2007. Norilsk Nickel has the capacity to produce 300,000 tons per annum of nickel (including 230,000 - 240,000 tons to be produced in Russia), and is one of major nickel exporters in the world. For a reference, Russian Government has also decided the policy to reduce the duty on copper export by 10%. On the other hand, one of leading traders in overseas countries said that this countermeasure to relieve the regulations for conversion trade on consignment to export nickel metal and cobalt from China has a large probability to benefit more cobalt than nickel. This view is due to the fact that China still needs to import nickel but has to export cobalt. The volumes of conversion trade on consignment to export nickel from China had once enlarged, because no duty was imposed on nickel metal to be exported from China under conversion trade on consignment. However, as regards export of nickel metal produced in China from nickel ore imported into China as raw material, Chinese Government has imposed from August of 2005 the duty of 15% on export of nickel metal and, consequently, the business to export nickel metal from China suddenly and considerably decreased from 2006. It is possible to export nickel metal from China by means of paying the duty of 15% and, as a matter of fact, China exported nickel metal on a scale of 6,000 tons in 2008 but the exports shrunk to a large extent, because the duty of 15% has come to be a barrier to export nickel metal from China. China has still required to import nickel metal and actually imported 110,000 tons of this metal in 2008. Therefore, there is a strong opinion in the market that, even if the circumstances for nickel export in Chin are revised (conditions for conversion trade on consignment are improved), the business to export nickel metal from China will be not possible to expand. |
| last modified : Thu 29 Jan, 2009 [10:13] |
